Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: form 3cd :: ACCOUNTING STANDARD :: empanelment :: VAT RATES :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: cpt :: VAT Audit
News Headlines »
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest

Let RBI appoint auditors of private banks, says ICAI
October, 03rd 2012

Accounting regulator has urged the government to let the Reserve Bank of India appoint auditors of private banks, citing the inherent conflict of interest when auditors are chosen by the bank management.

The Institute of Chartered Accountants of India (ICAI) has in a letter to the finance ministry and the ministry of corporate affairs urged ICAI has urged the government to allow independent regulator such as the Reserve Bank of India to appoint of auditors of private banks.

"Basic ethics of corporate governance mandates monitoring of auditors by a non-biased third party. The current system of choosing auditors amongst themselves without even consulting audit committees has to end immediately," a top ICAI official told ET.

The institute had flagged the issue earlier as well pointing out that auditor independence is particularly relevant for banks as they raise deposits from public.

The trigger for renewed request comes after the government has decided to select auditors for state run banks.

"Not being state run banks should not keep the government from monitoring these banks. At the end of the day it is the money of the common man which gets lost during run on banks," the official added, requesting anonymity.

Though each bank has an audit committee responsible for appointment of auditors, in practice the final selection is usually done by the top management.

An official from a private sector bank, however, dismissed the concerns as being overdone.

"We are listed firms, besides the banking regulator we are also under scrutiny from other regulators such as SEBI," he said.

Experts also maintain that an appointment by an independent regulator or a government constituted committee will also address the alleged overstatement of profits by banks.

"One just needs to see the huge divergence between NPA reported by bank auditors and that by the central bank. Obviously something is amiss and needs to be looked at urgently," explained Amarjit Chopra, past president, ICAI.

As per the RBI's annual report 2011-12, corporate debt restructuring increased substantially in the fourth quarter of 2011-12, taking such loans at the end of the year to about 5% of the loan book of the scheduled commercial banks, up from 3.9% a year ago.

In the case of state run banks, the government is strengthening the audit procedures by reducing multiple audits and synchronise audits with computerisation.

"Multiplicity of audits is resulting in waste of resources and audit fatigue. We are for effective internal audit and concurrent audit which should work as a strong deterrent," said a finance ministry official.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions